You would select No to the question because do not need to report any investment income from a TFSA in your T1 tax return.
However, if you make a lot of money from your investments in a TFSA account, you may be required to file Form RC243, Tax-Free Savings Account (TFSA) Return. If you think this situation may apply to you, you can inquire directly with the Canada Revenue Agency (CRA) at 1-800-959-8281.
As per CRA:
Most TFSA holders have no tax payable related to their TFSA investments, and no TFSA tax return has to be filed. However, when TFSA taxes are applicable for a year, Form RC243, Tax-Free Savings Account (TFSA) Return, must be filed by June 30, of the following year. Any tax owing must also be paid by that date.
For more information regarding investments in a TFSA, please visit these FAQs:
TurboTax: Taxing Investments in Canada
CRA: Tax-Free Savings Account (TFSA), Guide for Individuals
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